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Calumet Announces Sale of Assets Related to Industrial Portion of its Royal Purple® Business
CLMTCalumet Specialty Products Partners(CLMT) Prnewswire·2025-02-28 12:00

Core Viewpoint - Calumet, Inc. has entered into a definitive agreement to sell the industrial portion of its Royal Purple® business for 110million,whileretainingtheconsumersegmentandtheproductionfacilityinPorter,Texas[1][4].Group1:TransactionDetails−ThesaleincludesRoyalPurple′shigh−performancesyntheticindustrialproductline,whichencompassesindustrialgearlubricants,bio−environmentallubricants,stationarynaturalgasengineoils,hydrauliclubricants,andcompressoroils,alongwithanexclusivelicenseforindustrialapplications[2].−IntheyearendingDecember31,2024,RoyalPurple′sindustrialbusinessgeneratedapproximately110 million, while retaining the consumer segment and the production facility in Porter, Texas [1][4]. Group 1: Transaction Details - The sale includes Royal Purple's high-performance synthetic industrial product line, which encompasses industrial gear lubricants, bio-environmental lubricants, stationary natural gas engine oils, hydraulic lubricants, and compressor oils, along with an exclusive license for industrial applications [2]. - In the year ending December 31, 2024, Royal Purple's industrial business generated approximately 29 million in total sales [2]. Group 2: Retained Assets - Calumet will maintain ownership of the manufacturing site in Porter, Texas, and the consumer portion of the Royal Purple business, which serves a variety of automotive product applications through a multi-channel strategy [3]. - Key brands within the consumer segment include High Performance Motor Oil, HPS®, HMX®, Max EZ®, Max Gear®, Max-Clean®, XPR®, and Duralec Super™ [3]. Group 3: Financial Strategy - The company plans to use the proceeds from the sale primarily to pay down debt, with the transaction expected to close in the first half of 2025, subject to customary closing conditions [4]. - The CEO emphasized that the transaction aligns with the company's priority of deleveraging its balance sheet and reflects a strategic fit for the business [5].